scholarly journals INTEREST RATE METRIS SYSTEM: ALTERNATIVE STRATEGY FOR BANKING INDUSTRY

2016 ◽  
Vol 18 (4) ◽  
pp. 449-474
Author(s):  
Stephanus Ivan Goenawan
Keyword(s):  
Comparative Analysis ◽  
Interest Rate ◽  
Real Time ◽  
Banking Industry ◽  
Internet Banking ◽  
Alternative Strategy ◽  
Mobile Banking ◽  
Rate System ◽  
Automated Teller Machine ◽  
Time Zones

The financial transaction facilities including Automated Teller Machine (ATM), mobile banking, or internet banking can help customers to make real time transactions across location and time zones. On the basis of these two facts, this research comparatively analyze and prove that the daily interest rate system as commonly practiced by the bank potentially create loss to them. Since the daily interest rate system is based on the change of the date, the customers can double the nominal interest rate income. Using comparative analysis, this paper shows that the potential loss may be prevented when the bank use the metris interest rate system, which is based on the time in seconds.

scholarly journals  Electronic Banking: an Object of Fallacy or System of Functionality Samuel Affran Abstract — Corporate managers in the banking industry have employed series of strategies to lure many customers to patronage their categories they offer for sale. One of s

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Samuel Affran
Keyword(s):  
Customer Satisfaction ◽  
Banking Industry ◽  
Internet Banking ◽  
Mobile Banking ◽  
Electronic Banking ◽  
Banking Services ◽  
Corporate Managers ◽  
Banking Service ◽  
Automated Teller Machine ◽  
The Relationship

Corporate managers in the banking industry have employed series of strategies to lure many customers to patronage their categories they offer for sale. One of such is E-banking. These technological services are introduced by banks with the objective of providing customers with rapid services, with cost efficient. The situation tends to be different in this part of the world. Most of these services partially exist and if it fully does, it comes with unprecedented system failures. Based upon this premises this study is conducted exploratory to find out what really constitutes electronic banking from the Ghanaian perspective and also to ascertain their linkage with customer satisfaction. A total number of 200 questionnaires were administered. Cross-sectional survey was employed using questionnaire as the principal tool for the data collection. A 5-point Likert- scale ranging from 1 (strongly disagree) to 5(strongly agree) was used to measure the constructs. With the aid of SPSS version 23 the data was analyzed to establish the empirical linkage of the underlying constructs. The study among other things brought to the fore three (3) determinants (Automated Teller Machine, Mobile Phone Banking, Internet or Online banking) that define e-banking from the Ghanaian perspective proving that it is a system of functionality that is established for specific strategic purpose better still because of inefficient execution it was also proven to be an object of fallacy in the sense that having it does not necessary leads to customer satisfaction. The data analysis also shows that statistically between automated teller machine and customer satisfaction there is positively very weak relationship (R^2= .181, p< 0.126). Meaning holding all other variables constant, automated teller machine will cause 18.1% change in customer satisfaction. It is proven by the results that, automated teller machine not only weak in explaining the relationship but the impact is also not significant as the significant level is 0.126 which is above the standard significant value of 0.05. Meaning the automated teller machine if it is not administered efficiently and effectively will have the tendency to impact on customer’s satisfaction insignificantly. This presupposes that the automated teller machines in question were not administered efficiently and effectively. Thus this study has proven empirically that it is not a forgone conclusion that having an ATM services will automatically leads to customer satisfaction making the assertion a fallacy in Ghana thus disproving the study by Sultan and Komal (2009) claiming that having an automated teller machine services will automatically lead to customer satisfaction. The study revealed that relationship between mobile banking services and customer satisfaction is positively very weak (R^2= .170, p< 0.171). This simply means that mobile services rendered by banks to their customers were seriously criticized as woefully inadequate. Thus, holding all other variables constant, mobile banking services causes 17.0 % change in customer satisfaction. This result proves that a unit change in mobile banking service will induce 17.0% change in the rate of customer satisfaction. In other words when the level of mobile banking services is improved by 1% it will lead to 17.0% increase in customer satisfaction which is quite negligible. The significance level of this outcome in reference to the study results was 0.171 which is greater than the standard value of 0.05 indicating that the variance between mobile banking services and customer satisfaction was not significant. Internet banking services were quite effective and efficient thus having positive significant impact on customer satisfaction (R^2= .211, p< 0.003). But the relationship is equally weak explaining only 21.1% of customer satisfaction within the Ghanaian banking industry. The statistical understanding is that unilaterally internet banking service has the empirical tendencies to increase customer satisfaction by 21.1% if these services are improved just a percentage change. The practical connotation is that managers need to make automated teller machine more secured and very convenient spreading it across the length and breadth of the country. It should be in good function (twenty-four hours a day), accessible at all times (weekdays and weekends) and user-friendly as well. Again, managers should be proactive in sending message to customers whenever their system is malfunctioning in order to win customer trust. They should be ready to accept their mistakes and improve on customer complaint. They should avoid the rationalization of system failure which tend to put customers off serving as a catalyst for customer drifting. Again, internet connectivity should be reliable to boost mobile banking services.  The banks should create more mobile apps for the various product categories.  To sum up more resources should be allocated to online products since it is proven to be the only determinant significant in explaining customer satisfaction.

Financial Innovations and Performance of Commercial Banks in Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 21-33
Author(s):  
Naomi Wanja Ireri ◽  
Gladys Kimutai
Keyword(s):  
Rural Areas ◽  
Commercial Banks ◽  
Internet Banking ◽  
Ease Of Use ◽  
Primary Data ◽  
The Internet ◽  
Mobile Banking ◽  
Good Opportunity ◽  
Financial Innovations ◽  
Automated Teller Machine

Commercial banks in Kenya have embraced alternative banking channels which represent a shift in delivery of banking and financial services since the alternative banking have become synonymous with commercial banks in Kenya. While banks have succeeded in leveraging available technology and provide alternative avenues to customers for banking services, the challenge it faces today is optimizing the usage of these channels so as to improve on their performance. The general objective of this study was to investigate the effects of financial innovations on the performance of commercial banks in Kenya. The specific objectives of the study were to examine the influence of internet banking, mobile banking, agency banking and ATM banking on the performance of commercial banks in Kenya. The study was guided by agency theory, balanced score card and diffusion of innovation theory. This study employed a descriptive research design. The study targeted44 commercial banks in Kenya as at 2017. The 16 banks which embrace all the four financial innovations from 2013 to 2017were selected using purposive sampling method. The sample size was 80 respondents who comprised of 5 senior management employees in each of the selected banks.This study used questionnaire to collect primary data from the respondents. Content analysis technique was used to analyze qualitative data collected from open ended questions in and reported in narrative form. Descriptive statistics such as mean and standard deviation were used to analyse the quantitative data. Multiple regression analysis was used to show the relationship between independent variables against dependent variable. The study revealed that internet banking, mobile banking, agency banking and ATM banking had a positive and significant effect on the performance of commercial banks. Thisstudy concludes that the banking industry has benefited tremendously from the development of the Internet. The Internet fundamentally changed the way in which banking networks are designed to meet the client demands and expectations. Mobile banking provides a good opportunity to commercial banks in Kenya to reach many mobile phone subscribers in Kenya who had remained unbanked and unreached due to limited access to bank branch networks in the country. The access to the large masses through mobile banking of the population gives banks the opportunity to grow by reaching the unbanked population. Agency banking has led to accessibility of financial service to many customer in remote areas and hence an increase in effectiveness and efficiency in service delivery. Customers are satisfied with the automated teller machine services because of ease of use, transaction cost and service security but not satisfy with automated teller machine dispense of cash. The study recommends that the public and businesses must be encouraged to use Internet banking in their daily activities, including deposits, payments and money transfers. Commercial banks in Kenya should ensure convenience and security of mobile banking through written guidelines on convenience and security of mobile banking. Commercial banks in Kenya should increase the number of agents in estates and in the rural areas. This can be done by reducing the requirements of becoming a bank agent. The banks should employ customized software that records relevant information on automated teller machine cards so that banks can establish whether unauthorized transaction has taken place or not.

scholarly journals Electronic Banking and Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 3 (II) ◽  
pp. 293-304
Author(s):  
Maria Mueni Mutisya ◽  
Gerald Atheru
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Internet Banking ◽  
Business Environment ◽  
Mobile Banking ◽  
Electronic Banking ◽  
Return On Assets ◽  
Independent Variables ◽  
Net Profit ◽  
Automated Teller Machine

Information technology has changed the traditional ways of doing business to a digital and electronic way that has led to globalization. The banking industry has been forced by the wave of electronic payment system in the business environment to change from its traditional ways such as: long queues as customers waited to be served, delay in the clearing house as representatives of different banks waited to settle their dues and manual work that resulted to errors. The main purpose of the study was to determine the effect of electronic banking on the financial performance of commercial banks in Kenya. The specific objectives were to determine the extend of internet, mobile, automated teller machine and debit/credit card banking adoption and its effect on financial performance. The study covered a period of five years that is from the year 2011 to the year 2015 and adopted descriptive research design. The data collected was analyzed by the use of both descriptive and inferential statistics procedures. Primary and secondary data was collected from the 34 commercial banks that responded leading to a respond rate of 79.04% out of the 43 commercial banks. The trade analysis showed that internet banking was recognized and accepted by the Kenyan commercial banks and the Kenyans as a way of transacting. Electronic banking was found to be positive and significantly related to the financial performance of the commercial banks in Kenya. This was attributed by an R Square of 0.688 for Return On Assets, 0.63 for Net Profit and 0.277 for Return On Equity indicating that the independent variables in the study were able to give information of up to 68.8%, 63% and 27.7% respectively while the remaining 31.2%, 27% and 72.3% could not be explained in the study but could be explained using other variables outside the study. All the independent variables were (internet banking, Mobile banking, Automated Teller Machine banking and Debit/Credit banking) found to be positively and significantly related to the Return On Assets while only mobile banking and internet banking were found to be positively and significantly related to Net Profit since their p Values were less 0.05. Automated Teller Machine banking showed a positive relation that was insignificant with the Return On Equity.The study recommends that, electronic banking should be employed by commercial banks through proper management policies since it has shown improved efficiency and financial performance. For further studies, areas of crime technology, quality of banking services, electronic fund transfer and performing loans should be looked at. This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License of United States unless otherwise stated. Access, citation and distribution of this article is allowed with full recognition of the authors and the source.

scholarly journals The Role Of Distance Banking Services In The Context Of Integration Processes

2021 ◽  
Vol 03 (01) ◽  
pp. 28-35
Author(s):  
Otabek Maxmadaminovich Melikov ◽  
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Internet Banking ◽  
Mobile Banking ◽  
Banking Services ◽  
Banking Systems ◽  
Factors Influencing ◽  
Remote Services

This article describes in detail the essence, advantages of "Distance banking services", "Internet-banking" and "Mobile-banking" in the context of integration processes, remote services in the banks of the country and their status. Statistical analysis of users of remote banking systems was carried out, as well as comparative analysis with world indicators. It also suggests the interdependence of factors influencing the development of distance banking services and ways to further improve it.

scholarly journals Investigating the Effect of Convenience, Accessibility and Reliability on Customer Satisfaction in the Nigeria Banking Industry

2018 ◽  
Vol 6 (3) ◽  
pp. 296-314
Author(s):  
Mohammed Sani Abdullahi ◽  
Bashir Mikail Usman ◽  
Fatima Binta Salisu ◽  
Yusuf Suleiman Muhammad
Keyword(s):  
Customer Satisfaction ◽  
Sample Size ◽  
Banking Industry ◽  
Internet Banking ◽  
Sample Size Determination ◽  
Mobile Banking ◽  
Banking Services ◽  
Negative Effect ◽  
Positive Effect ◽  
Structured Questionnaire

This study investigates the effect of convenience, accessibility and reliability on customer satisfaction in the Nigeria banking industry. The target populations of the study are customers of Jaiz Bank, BUK Road Branch in Kano State, Nigeria and the stated bank branch serves as the scope of the study. The population of the study consists of 10,580 customers of the focused bank in question, and 371 respondents make up the study sample size and it was captured out of the stated population which was obtain through research advisors table of sample size determination. Structured questionnaire was employed as the method of data collection, while regression analysis was employed as the method of data analysis that tests the hypothesized hypotheses of the study. The result indicates that electronic accessibility and convenience has significant and positive effect on customer satisfaction. The result of the study also found that electronic reliability has negative effect on customer satisfaction. This study recommends that banks should enlighten and educate customers judiciously on the use of electronic services such as SMS (Mobile) banking, web/internet banking and e-switch, POS banking services that are not well patronized. Internet banking should be well developed in other to face competition in the banking industry and maintain profit.

Anytime Anywhere Any-Amount Anybody to Anybody Real-Time Payment (5A-RTP)

2017 ◽  
pp. 140-156
Author(s):  
Ranjit Biswas
Keyword(s):  
Real Time ◽  
Credit Card ◽  
Internet Banking ◽  
New Method ◽  
Mobile Banking ◽  
Natural Death ◽  
Economic Progress ◽  
Application Potential ◽  
Paper Work ◽  
Paper Format

This chapter introduces about a Proposal to any bank of any country for fast but secured transfer of money anytime anywhere any-amount by anybody to anybody on the spot with confirmation from the payee on the spot. The work here is on a new method of real time payment system, which is highly secured and fast, and 100% technology-based without any paper format or paper work of the bank. This breaking scheme is entitled as “5A-RTP scheme” where ‘5A' stands for Anytime Anywhere Any-amount Anybody to Anybody and ‘RTP' stands for Real-Time Payment. There is no paper-work at all. It is completely secured, realization of payment (debit + credit) happens immediately very fast, without any man-hour or manpower of the bank. It is claimed that 5A-RTP scheme, if incorporated in all the banks in any country, will give the country a huge momentum of customers' satisfaction, huge momentum in country's growth and economic progress. The revolutionary breakthrough in 5A-RTP scheme is that it dominates each of the existing banking instruments and facilities like Cheque, Pay-order, Draft, ATM machine, Credit Card, Debit Card, Internet Banking, Mobile Banking, Traveller's Cheque, etc. The 5A-RTP scheme may even slowly cause a natural death of the existing Cheque and Draft facilities from the country because of its huge application potential, in particular in vast countries like China, India, Brazil, USA, UK, etc.

scholarly journals IMPLEMENTATION OF DIGITAL MARKETING TO INCREASE SATISFACTION AND IMPACT ON THE IMAGE OF BANKING PT BANK CENTRAL ASIA TBK

2020 ◽  
Vol 1 (1) ◽  
pp. 37-43
Author(s):  
Mohamad Arfiman Yosep ◽  
Yoyo Sudaryo ◽  
Astrin Kusumawardan ◽  
Nandan Limakrisna
Keyword(s):  
Research Method ◽  
Banking Industry ◽  
Internet Banking ◽  
Digital Marketing ◽  
Mobile Banking ◽  
Object A ◽  
The Public ◽  
The Status ◽  
The Many ◽  
Descriptive Method

The banking industry currently wants to provide the best service to the public because of the many bank expansion that has just sprung up but already offers a lot of banking convenience services. This begins with the application of digital marketing that makes it easy for customers to make transactions. Digital marketing is very easy because transactions can be done only through smartphones or other devices. Some banks have services such as internet banking, mobile banking, SMS banking, and customers can now create new accounts using only their smartphones. This makes digital marketing a new service prima donna in providing services to the public in the banking world in Indonesia. The research method used in this research is descriptive and verification research. A descriptive method is a method in examining the status of a group of people, the status of an object, a set of conditions, a system of thought, or a class of events in the present  

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